2-21-08 The Airline Industry

2-21-08 The Airline Industry - 2-19-2008The Airline...

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Unformatted text preview: 2-19-2008The Airline Industry1.Airline industry Historya.Began after WWI when the post office had to ship mail. They are required to ship mail as quickly as possible.b.Post office hired outside pilots to ship the mail and this turned into taking passengers when they took the mailc.First passenger plane is the DC3 in 1930d.1930si.Northwest, Delta, Continental, etc.2.1938 the Civil Aeronautic Act of 1938a.Federal Regulations set forward by Roosevelti.Regulated: pricesii.Regulated only in interstate flightsiii. Who could enter the industry was regulated1.7-8 airlines were all that were allowed in the industryiv. Regulations lasted 40 years3.Deregulation: 1978 (bankruptcies, mergers)a.Came about because airline industry was being inefficient b.Causes more competitionc.Profit margin was higher when it was regulated because no competition allows for higher pricesd.Allowed all companies to join in on the industrye.Hard to survive: Casualtiesi.Pan-America was only airline originally that could fly internationally...
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2-21-08 The Airline Industry - 2-19-2008The Airline...

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